The EU demanded austerity from Eurozone members, with devastating consequences. But the UK austerity was entirely self-imposed.

Cable Update (GBPUSD)

Shares in UK banks, insurers, builders and real estate companies getting hammered in trading.... Trading in Barclays and RBS temporarily halted. Conversely, oil companies and miners, and others which derive most of their earnings in overseas markets ...

The Really Useless Thread

Shares in UK banks, insurers, builders and real estate companies getting hammered in trading.... Trading in Barclays and RBS temporarily halted. Conversely, oil companies and miners, and others which derive most of their earnings in overseas markets ...

Cable Update (GBPUSD)

The interest rate increases on Black Wednesday had no effect in keeping the UK in the ERM. Speculators knew it (both the ERM and the demand zapping high interest rates) was unsustainable and kept on selling, causing the government to throw in the ...

Cable Update (GBPUSD)

I base my argument on economic history. Use Black Wednesday as a prime example for a case study on sterling. Rate rises are highly unlikely to be on the immediate horizon, particulatrly when gilt yields are at record lows - this shows how sensitive ...

Cable Update (GBPUSD)

Exactly. Any inflation pass through from a weaker currency would be seen as temporary and very unlikely to lead to higher wages, as the prices rises come at a time of a demand shock. A rate increase (or increases) would further damage domestic ...

Cable Update (GBPUSD)

and a temporary solution, one that leads to more selling and weaker growth. Interest rate increases did little to stem the fall in the RUB. The currency only recovered when the oil price bottomed.

Cable Update (GBPUSD)

When do rate rises to counter heavy selling of a currency work? Black Wednesday in 1992? Did the Central Bank of Russia succeed in halting the rout in the RUB through themany rate increases? In EM crises, of which there have been many, do they work? ...

Cable Update (GBPUSD)

All the best with yours

Cable Update (GBPUSD)

I think a rate rise is the wrong move and would be surpised if one took place. It smacks of panic and is often seen as a challenge to the market to test the resolve of the CB - by selling to find out how high will they raise rates in the face of a ...

Cable Update (GBPUSD)

It's far more to do with the fallout from Brexit, namely the political vacuum caused by the lack of leadership in the Conservative party and the collapse of Labour's (the leading opposition party) shadow cabinet, making a leadership contest ...

Cable Update (GBPUSD)

On what is meant to be a serious trading thread, you post links to that site as a credible source of news. Probably best to restrict it to your own thread, the one containing the Holocaust denial stuff and other wild conspiracies. There are some ...

The Really Useless Thread

Lower turnout than expected being reported in London, due to weather and travel delays. This is bad news for Remain.

Cable Update (GBPUSD)

Sunderland was expected to vote leave, it's the margin of win that has spooked the markets...

Cable Update (GBPUSD)

Newcastle votes to remain, but with a lower than expected winning margin, hence sterling and equity futures dropping.

Cable Update (GBPUSD)

Fed Funds futures are pricing only a 15% chance of a hike in July (up from 10% in yesterday's session), which will likely rise further in tomorrow's session, assuming we see an official confirmation of a Remain outcome and bonds soften. Plenty of ...

Cable Update (GBPUSD)

Farage has all but conceded defeat - he is reported to have based his statement on a private poll based on a sample of 10,000. YouGuv poll showing 52/48 in favour of remain. Leading Remain campaigners are exuding confidence. Odds quoted of remaining ...

Cable Update (GBPUSD)

Farage has all but conceded defeat - he is reported to have based his statement on a private poll based on a sample of 10,000. YouGuv poll showing 52/48 in favour of remain. url

The Really Useless Thread

It is what happened following the Scottish referendum in 2014, when there was a knee-jerk pop to the upside following the result....

Cable Update (GBPUSD)

And any downside move from an out vote could be brutal due to huge short-term political and economic uncertainty and instability it would cause. David Cameron will likely resign as Prime Minister, triggering a leadership contest (with Boris being ...

Cable Update (GBPUSD)